The year 2014 saw 114 Asia-Pacific-focused private equity funds close. According to Preqin’s Funds in Market online service, the year brought in $45bn of private equity capital and witnessed four of the 10 largest private equity funds raised since 2010. Although 35 fewer Asia-Pacific-focused funds closed in 2014 than in the previous year, the aggregate capital raised was $8.4bn more than in 2013. The 10 largest funds closed in 2014 recorded an average final close size of $2.3bn.
The leader of the pack in Asia-Pacific-focused fundraising in 2014 was Carlyle Asia Partners IV, closing on $3.9bn. The fund focuses on buyout and growth investments with a particular preference for China, among other Asian regions. It looks to make investments in the consumer, financial services, healthcare and technology sectors.
Three other buyout funds followed closely behind, with Affinity Asia Pacific Fund IV raising $3.8bn in early 2014. The fund aims to make investments in the business services, consumer, healthcare and manufacturing industries within the regions of South Korea, Australia, ASEAN and Greater China. CVC Capital Partners Asia Pacific IV and TPG Asia VI raised $3.5bn and $3.3bn respectively, with both focusing on investment opportunities across a diversified range of industries in Asia. CDH Fund V, a growth vehicle, marks its place as the fifth largest fund to close in 2014. It will target the healthcare, consumer and financial services sectors.
Morgan Stanley Private Equity Asia Fund IV, a $1.7bn buyout fund seeking exposure to Chinese and South Korean markets, comes in sixth place. The largest venture capital fund of the year, Shanghai Real Power Emerging Industry Fund, will aim to commit $1.2bn to China’s energy and manufacturing industries. Closing at $1.1bn is the buyout vehicle, Carlyle Japan Partners III; it seeks to invest in the Japanese market across a diversified range of industries. The final two funds in the list will both target China. Yunfeng Fund II and Orchid Asia VI raised $1.1bn in venture capital and $920mn in growth capital commitments respectively.
With new fundraising restrictions in place across the Asia-Pacific region, such as the obligation to register with Asset Management Association of China when raising China-based vehicles, GPs face a tougher time raising capital for their funds.